Vice President: Building the 'Taiwan Brand' with Trust at the Core, Through Government-Industry Collaboration

Central News

(Central News Agency reporter Tseng Yun-ting, Taipei, 18th) Vice President Bi-khim Hsiao stated today in her speech that in the face of escalating global competition, the government and industries must work together to shape a 'Taiwan Brand' centered on 'trust.' By leveraging non-China supply chains, product quality, and technological capabilities, Taiwan can continuously enhance its competitiveness. The government will support industries with essential resources such as water, electricity, and talent. She also urged that major infrastructure projects require government budget allocations, calling on both ruling and opposition parties to swiftly complete the annual budget review in the Legislative Yuan.

The Chinese National Federation of Industries (CNFI) held its 27th First General Meeting today, with Vice President Hsiao as a guest speaker. She noted that over its 70-year history, the CNFI has played a pivotal role in Taiwan's economic development—not only as a key driver of economic growth but also as a vital bridge connecting local industries to the global market.

The Vice President pointed out that the world she sees is undergoing profound transformation. The widely held belief that 'the world is flat'—especially following the peace dividend after the Cold War over 30 years ago—spurred rapid globalization. Driven by efficiency and low costs, people, capital, and industries were globally repositioned, allowing Taiwan to enjoy a period of rapid economic prosperity.

However, she said, the pandemic accelerated supply chain restructuring, prompting nations in recent years to strengthen their defense capabilities and supply chain resilience. Whether through strategies like 'small yard, high fence' or 'large yard, low fence,' countries are adapting to intense international competition by safeguarding their own strength and supply chain security.

Vice President Hsiao stated that in this rapidly changing environment, both industries and the government must remain highly vigilant. Taiwan's recent economic performance has been outstanding: GDP growth exceeded 14% last year and in the first quarter of this year, and the stock market's market capitalization has surpassed that of the United Kingdom, the birthplace of the Industrial Revolution—achievements resulting from the long-term efforts of the industrial sector.

She noted that while the ongoing restructuring of the international order, intensifying geopolitical competition, and continuous breakthroughs in technological capabilities are expanding the boundaries of national competitiveness—bringing risks and challenges—they also present new development opportunities.

The Vice President mentioned that the founder of AI startup Anthropic recently warned that the pace of AI development may far outstrip the ability of labor structures, employment cultures, government regulations, and ethical norms to adapt. Therefore, society must build a robust environment that allows all stakeholders to move forward with confidence, even as innovation accelerates.

Regarding the government's role, Vice President Hsiao said the first priority is to continue providing key resources such as water, electricity, and talent to support industrial development. Many major infrastructure projects depend on government budgets, and she urged cross-party cooperation to swiftly finalize the annual budget review in the Legislative Yuan to ensure smooth project implementation.

Second, on the regulatory front, she emphasized the need to balance innovation with stability. Given the extremely rapid pace of AI and technological advancement, regulatory systems must remain flexible enough to support innovation while maintaining social stability and avoiding becoming a barrier to industrial development. The government will continue to share responsibility with industries to create a regulatory environment conducive to innovation.

Third, she highlighted President Lai Ching-te's vision of 'Balanced Taiwan.' While the semiconductor and AI industries have recently performed exceptionally well, the government will not overlook the development needs of traditional industries, the service sector, and other fields. Policies such as promoting an Asian asset management center aim to ensure that all sectors of society can share in the benefits of economic growth.

She also noted that President Lai recently proposed a NT$100 billion initiative to expand support for small and medium-sized enterprises (SMEs) in addressing challenges from digital transformation, net-zero transition, and changing international dynamics, thereby enhancing overall competitiveness.

The Vice President stressed that balanced development extends beyond industries to geographical equity. The government aims to spread industrial momentum beyond the capital region or Hsinchu Science Park to all parts of Taiwan. Continued investment in infrastructure and local industry development will allow regions across the island to share in growth opportunities.

She further emphasized that balanced development must also include enterprises of all sizes—large, medium, and micro-sized businesses alike should find space to grow within the economy. By promoting balanced development across industries, regions, and enterprise scales, Taiwan can build greater competitiveness.

The Vice President noted that recent international rankings consistently show Taiwan's competitiveness on the rise—achievements rooted in the long-term dedication of the business community. She expressed gratitude to the CNFI for its enduring role as a key platform for communication between government and industry.

Finally, she emphasized that the government and industries must work together to shape the 'Taiwan Brand.' Drawing from her experience in the United States, she observed that Taiwanese companies are often perceived as more modest and humble compared to their American counterparts. Yet, in today's fiercely competitive global landscape, the government aims to help businesses showcase the added value of the Taiwan brand internationally.

The core value of the Taiwan brand, she said, is 'trust.' Whether through the globally sought-after non-China supply chains, supply chain reliability, product quality, or technological prowess, Taiwan has gradually evolved from its past role as a contract manufacturer to actively participating in setting new technological standards and leading in many fields worldwide.

The government will continue to serve as an international marketer of the Taiwan brand, but this effort must be backed by the solid technology and capabilities of enterprises. In the face of global upheaval and rapid change, the government and industry must maintain close communication and collaboration to ensure Taiwan continues to move forward. (Edited by Pan Yi-ching) 1150618